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Editor: John Mortimer

Saturday, 6 October 2012

Millbrook Proving Ground up for sale?

Word on the street suggests General Motors is on the
point of selling its UK Millbrook Proving Ground in Bedfordshire.

Rationalisation of GM’s
future requirements for test and development activities suggests that demands
for the well-known proving ground are likely to diminish, paving the way for a
transfer of ownership. About 60% of Millbrook’s business is thought to have its
origins in GM; the remainder is generated by outside interests.

Several parties have expressed interest but the most
likely future owner could be JaguarLandRover (JLR) which has increasing demand
for Millbrook’s extensive resources and is in the throes of reorganizing it UK operations.

JLR is also in the
midst of an aggressive new model programme which places huge demands on
facilities and people.

Of particular interest to JLR are Millbrook’s proving
grounds, most notably the secure high speed test track capable of 150mile/h
(240km/h). An added bonus is Millbrook’s own description of offering ‘extreme
testing for extreme conditions’.

Not to be discounted either is Millbrook’s ample,
secluded environment which would make it easy to extend engine and vehicle test
facilities. Also, Millbrook already employs many highly skilled engineers of
which JLR is currently short.

In addition, JLR is
revamping its engine test facilities in the light of ever-unfolding emissions
regulations especially in the USA. For example, Horiba Automotive Test Systems
of Northampton is working through a £7 million contract at Jaguar to update five
engine emission test cells having recently completed a £5 million contract at
Land Rover.

Compliance with
California’s upcoming regulations is important to the SUV, sports and luxury car maker
as the UK business, owned by TATA Motors of India, knows full well that without
such clearance JLR would be unable to sell vehicles in the state.

JLR has six principal
sites: Gaydon, Oxfordshire and Whitley, Coventry for design and engineering; manufacturing
sites at Halewood on Merseyside, Castle Bromwich and Solihull in the West
Midlands which has for many years been the home of Land Rover production. Finally,
JLR (TATA) is building a new engine plant in Wolverhampton.

It is expected that a
new upcoming cross-over vehicle, could be built at the west Midlands site.
Halewood is the home of both Freelander and Evoque, the latest product from
JLR. Castle Bromwich symbolises JLR’s expertise in aluminium vehicle production
and will be production location for the new F Type.

JLR’s centres for
design and engineering have traditionally been located at Gaydon and Whitley.
But the addition of a site like Millbrook would offer the company additional
engine and vehicle test facilities. The extensive test tracks on offer in the
Bedfordshire countryside would provide JLR with unique secure facilities to
conduct all-round development, particularly off-road development.

GM has found that it no
longer has the need for Millbrook, some 40 percent of the work of which is
taken up by third parties, including Transport for London. Just how many of its
existing customers JLR will be able to retain remains to be seen. However, it is almost certain that Millbrook will continue to work for GM under the terms of an agreement that will be made with the new owner. Transport for London and the Ministry of Defence are also likely to continue as customers.

Other UK vehicle
manufacturers include BMW, Honda, Nissan and Toyota. Such companies are unlikely
to want to discharge any work to Millbrook which might be confidential in
nature.

This not to suggest
they would not use Millbrook for more general work. Indeed, the extensive
nature of Millbrook’s facilities provides plenty of options to attract a whole
range of test and development work, including safety, systems test and vehicle
conversion.

Among recent work at Millbrook has been development of X82, the next generation Opel/Vauxhall Vivaro van built at Luton, Bedfordshire.

The idea for Millbrook
blossomed in the mid-1960s when Vauxhall and Bedford began developing ideas for
a proving ground based on their parent General Motors facilities in the US.
Construction began in 1968 and following GM’s acquisition of Lotus Millbrook
became Millbrook Proving Ground Ltd, a subsidiary of Group Lotus.

However, the facilities
were separated out from Lotus in 1993 and became part of GM holdings UK Ltd,
effectively “privatizing” them. Subsequently,
Millbrook has developed a world-wide client base. It describes itself as
one of Europe’s leading locations for the development and demonstration of
every type of land vehicle, from motor cycles to passenger cars, and heavy
commercials to military and off-highway.

Millbrook employs some 300
highly skilled engineers suggesting the business has an effective sales
turnover of £30 million a year.

Meanwhile, in Germany GM has invested 28.5 million euros enhancing its Opel/Vauxhall Dudenhofen facility. The work includes a new high-speed circuit and full electronic control and measurement technology.